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Sustainable anti-counterfeiting solutions are necessary to protect consumers and authorized brands and businesses from a massive counterfeit trade.

Did you know that counterfeit trade is at 3.3% of the overall global trade? This was according to a report by the European Union Intellectual Property Office and the OECD in 2019. The illegal trade has grown exponentially since the pandemic. With a slew of global consumers coming together to shop for their needs through various online methods, meeting such huge demands paved the way for counterfeit trade’s massive growth.

As fast as counterfeiting and piracy practices are spreading, the people behind this illegal activity are also becoming more empowered with sophisticated methods of getting their fake products out into the market, with lesser consequences.

Counterfeit trade breaches the copyright and trademarks of brands and businesses, gaining profits at the expense of legitimate organizations and governments worldwide. Not only that, but it also puts the consumers’ well-being in jeopardy due to the low-quality standard of counterfeit products. 

It is about time to go beyond mere awareness and to actively fight against supporting counterfeits. To do so we must first, learn how to identify counterfeit goods from original brands; second, take concrete steps to fight it by integrating anti-counterfeiting solutions in our businesses, and finally, completely stop supporting counterfeit goods by not buying them.

5 Ways to Identify Counterfeit Goods

Identifying authentic products from fake ones used to be more straightforward, but this doesn’t get easier with the proliferation of e-commerce sites and online marketplaces today. For consumers, there is more than one perfect method of identifying counterfeits. Here are 4 ways to determine whether a product is original or fake.

Price

The best indicator for identifying a fake product is price. If an item is sold for only a fraction of its market value or for 60-80% less of the original price, this item can likely be considered an imitation. When the price of a product is considered too good to be true, it might be a good thing to determine the reason why, and most of the time, it simply means that the product is not original. This applies especially to counterfeit luxury goods.

Price is the most attractive quality of a product to an interested buyer. So it is not surprising why counterfeits sell very easily. A lot of fake products in the market today look very identical to original ones, and when buying these, most consumers are unaware of any potential hazards.

The Government Accountability Office once reported in 2018 that fake iPhones could put users at risk of electrocution, a potentially fatal consequence for a seemingly harmless act of buying an imitation product. Fake travel mugs could also have higher lead content whereas unoriginal cosmetics may contain harmful ingredients like cyanide and mercury.

Website 

Buying a product in person makes it easier for any buyer to ascertain whether it is original or not. That is doubly harder to accomplish when buying through e-commerce websites or online marketplaces. Fortunately, there are still other ways to determine whether a product may be authentic or not: the quality of images used on the website or the wealth of information provided in the product descriptions. A lot of counterfeit sellers neglect this crucial information, but when we take the time to research, analyze, and compare information across authorized websites, the information we gather might help a lot.

Customer reviews

Due to the popularity of online selling, product testimonials and customer reviews are becoming an essential after-sales activity for online businesses. It is a quick way to learn how previous transactions with the same seller went, what the quality of the product is, and how your buying experience is likely going to be as well. Leverage authentic reviews before deciding on a purchase.

Payment method and country

Authentic brands very often use similar payment methods for purchase on their website, that is either through credit card, debit card, or Paypal. Be wary of websites that are asking you to do bank or wire transfers, as these are likely unverified merchants. Other details which may help in identifying whether a product is authentic or not is the location of the seller or the country where the product is being shipped from.

Product quality and packaging

For online transactions, product quality is determined after a purchase is complete. But in retail sales, being able to check the product in person may make it easier to distinguish a fake from an original product through its overall quality, branding and packaging details. Authentic luxury items will be mindfully packed to conjure a rare, enjoyable, and luxurious unboxing experience for buyers. Meanwhile, broken seals, tampered stickers, and the lack of desirable packaging most often signify that a product is unoriginal.

The Best Anti-Counterfeiting Solutions for Your Business

Be a step ahead of counterfeit sellers by protecting your products using high-quality security packaging. With the popularity of online selling these days, finding proactive anti-counterfeiting solutions can be as simple as working with a company that offers a wide range of fully customisable packaging labels, designed to fit your unique business needs.

1. Fully customisable and versatile Security Labels

The quality of security labels offered by Packtica is designed for businesses across various industries. Choose among 2D/3D hologram, Russlegram, QR code label, dot matrix, and holographic foils for extra protection and the best anti-counterfeit solutions to be integrated into your packaging.

2. SecurePack

SecurePack is unlike any ordinary sticker as it contains variable data, providing an extra layer of protection and integrating infinitely unique anti-counterfeit solutions into your product packaging. SecurePack might be the best thing that happened to your brand image in the era of fakes and counterfeits.

3. Tamper Evident Seals

Tampering is one of the most common ways authentic products get compromised and altered. Tamper-proof stickers alleviate this problem in all phases of production, distribution, sale, and even during actual use. Packtica’s tamper-evident seal tapes and tamper-evident seal bags help protect your most valuable items and products, especially when in transit.

While it must be a long process before we arrive at an idyllic society that is completely devoid of counterfeits and fake products, every step we take will help to protect ourselves and our businesses from being taken advantage of by this illegal trade.

Learn more about various security packaging options you can avail at Packtica. You may also get in touch with us directly at +632-8842-0430 or email sales@packtica.com.ph to find the best security packaging solution/s that fit your needs!

References

https://www.oecd.org/newsroom/trade-in-fake-goods-is-now-33-of-world-trade-and-rising.htm

US Government Accountability Office Report

The distribution of fake products, counterfeits, and pirated goods has been an age-old problem in the Philippines. The counterfeiting and piracy problem is often present in new and emerging industries or amongst those with an established market. For as long as there is a demand amongst consumers, supply – to some extent – can be vigorously met by counterfeit trade. This has grown into an opportunity that’s been taken advantaged for a while. The market is foreseen to continuously grow through digital technology, making the distribution of online counterfeit goods a lot easier.

The Intellectual Property Office of the Philippines (IPOPHL) is actively pursuing several reports of counterfeiting and piracy. In 2018 alone, a total of PHP23.5 billion worth of counterfeits were seized by the agency. The top 5 counterfeit products were cigarettes and alcohol, pharmaceuticals and personal care products, handbags and wallets, optical media, and footwear. It doesn’t help that the counterfeit market in Southeast Asia continues to rise even sharply, and the Philippines is among the biggest destination markets. 

The Impact of Counterfeiting & Piracy on Businesses

Counterfeit consumer goods pose a real threat to businesses not only in the Philippines but all over the world. Even if the most obvious benefit it gives to consumers is easy accessibility of high value goods at a much lower price, there are considerable impacts that ought to put both consumers and businesses on guard against counterfeits.

• Counterfeits are low-quality products

The price of a good is often reflective of its quality. Therefore, even counterfeit luxury goods do not necessarily reflect the same quality of an original luxury item that one gets from the original company. Luxury handbags, wallets, and footwear that come very cheap are often counterfeits that only offer a superficial value to outsiders and are rarely a high-quality item that one can keep and use for many years.

Counterfeit luxury goods, however, do not pose the same level of threat as counterfeit consumer goods such as personal care products and pharmaceutical products, which are considered to be top-selling counterfeits in the country. For example, utilizing skincare and thinking it is of great quality because it was manufactured from South Korea when it is a fake product indeed, can lead to skin irritations and rashes in some instances. Pharmaceutical products are another type of counterfeits that must be heavily monitored as they can become a serious threat, creating more damage to our health.

There are several types of counterfeit products that do more harm than good such as electronic gadgets and even automotive parts. These are high-value goods that rarely come cheap, but when they are mass-produced as counterfeit technology to offset the demand from the market, they are easily available at a much lower cost.

The quality of these counterfeit electronics is obviously much lower as they are unoriginal, fake, and may not have gone through the same level or even any quality inspection at all. Most of the time, they only end up causing more damage when used together with other appliances or your car. In worst-case scenarios, they can lead to accidents or even deaths.

• Counterfeits pose a real threat to original businesses and brand owners

Original brands typically have invested huge amounts of money, time, and effort to grow into becoming a popular brand that they have become to the market. But with the proliferation of fake products and counterfeit goods, they’ve become less valuable to people who purchase the items at a much lower price.

Consumers are not always aware if they’ve purchased a counterfeit item, as they can simply be disguised as a good bargain by the smartest merchants. But every sale of a counterfeit item is equivalent to lost revenue from the original brand or company. Not only that, consumers will have no one else to blame when their products get easily damaged. 

All blame goes back to the original brand owner, rather than the marketplace or seller who sold them these counterfeit items. Businesses could easily get overwhelmed by complaints from consumers who in the first place didn’t buy the same products at the value they were originally sold. Furthermore, brand owners also become subject to a lot of negative opinions unless the truth is discovered. There are negative consequences of buying fake, low-value products that are counterfeits and these negative impacts may affect either the consumer or the brands/businesses directly.

How Businesses Can Fight Back Against Counterfeits

The problem of counterfeiting and piracy can be very difficult to control. Even if there is an appointed agency tasked to oversee these matters, there are things that businesses can do to fight back and protect their brands against counterfeits.

• Supply Chain Traceability

The process of tracing products from its original source until it reaches the consumer is known as supply chain traceability. 

Through this technology that Packtica offers to businesses helping them in tracing the distribution chain, it empowers brand owners by giving them access to more control and in regulating the destination of their products. Should problems of forgery and counterfeits plague their brand along the way, it’ll be easier to track and put a stop to these illegal activities.

• Invest in High-Quality Security Packaging

Retail and consumer goods, pharmaceutical products, automotive parts, and goods belonging to industries plagued with grey market sales can start fighting counterfeit issues by investing in high-quality security packaging and labels.

Packtica’s SecurePack integrates a wide variety of security printing solutions that include holographic labels, transparent hologram lamination, and variable data for distinct identification and security, providing added protection to businesses and brands. 

Moreover, anti-tamper stickers are equally ideal anti-counterfeiting solutions offered by Packtica to businesses who want to utilise another effective brand protection strategy in their packaging.

• Consumer Verification

One of the best ways for businesses and brands to regulate control and effectively fight back against counterfeiting and piracy is by working with consumers directly either through educating them or by integrating consumer verification into their packaging.

Packtica utilises an intelligent system for consumer verification known as CheckNow. By integrating CheckNow into your packaging, consumers can now easily verify whether their product is genuine or not. CheckNow utilizes a unique QR code system, enabling an online QR authentication platform for your products that can be used to promote brand protection for your business.

These are just some of the few but very effective strategies to fight against forgery, tampering, and piracy of products – a critical issue plaguing the world right now – even more intensely during this pandemic. 

There is no more time to waste; protect your brand and business against counterfeits immediately! 

Contact Packtica at 02-8842-0430 or email sales@packtica.com.ph to seek the help that you need. And together, let’s work towards fighting counterfeiting and piracy.

References:

• https://www.ipophil.gov.ph/news/ipophl-ncipr-to-take-on-online-counterfeiting-piracy/
• https://www.pna.gov.ph/articles/1083984
• https://rouse.com/insights/news/2020/the-counterfeit-goods-surge-in-southeast-asia 
• https://www.divinalaw.com/news-and-updates/liability-online-marketplaces-sale-counterfeit-goods/
• https://www.ipophil.gov.ph/news/ipophl-lauds-customs-for-destruction-of-counterfeits-amid-covid/
• Packtica Malaysia
• Packtica Website PH